Coinbase’s Key Role in Historic $225M Crypto Seizure
Coinbase played a pivotal role in the US Secret Service‘s largest-ever cryptocurrency seizure, totaling $225 million. The operation targeted funds linked to sophisticated investment scams, demonstrating the effectiveness of collaboration between cryptocurrency exchanges and law enforcement in combating crypto scams.
Investigation and Seizure Details
In 2024, Coinbase participated in an ‘investigative sprint’ with the US Secret Service. The joint effort focused on identifying scam victims and tracing illicit transactions. Investigators identified over 130 Coinbase customers as victims, with total losses reaching $2.3 million.
Tether’s Crucial Involvement
Tether, the stablecoin issuer, froze 39 wallet addresses containing $225 million in USDT. After the seizure, Tether burned the tokens and reissued an equivalent amount to a US Secret Service-controlled wallet. This process highlighted how blockchain technology enhances transparency in law enforcement operations.
Global Crackdown on Crypto Crime
- Australian authorities seized Bitcoin connected to a 2013 exchange heist
- German law enforcement confiscated crypto from a money laundering platform
These cases demonstrate increasing international cooperation against crypto-related crimes.
